2. A manufacturing company is going to replace an existing machine with a new one. The price of the machine is SAR 600 000, the installation cost is estimated to be 40% of the machine's price, the machine will require site preparation that will cost another SAR 160 000. The machine will have a salvage value of SAR 150 000 after five years. Calculate the book value and depreciation allowance for each year using: (a) Straight-line depreciation. (b) Double declining balance depreciation Note: A table illustrating the Book values for both the methods is Essential Display all Calculations